How Does The War Affect The Economy

The U.S. war spending in Iraq and Afghanistan to the health of the US economy. The economists disagree whether these wars will have a positive or negative long-term economic impact. The total spending remains relatively compared to historical levels. During WWII, defense spending to levels as high as 37.8% of U.S. gross domestic product (GDP). The total costs of the wars should be kept in perspective, they also point to collateral economic consequences beyond direct expenditures. This includes international debt accrued to sustain war costs, the global oil markets, in part to the violence in Iraq and Afghanistan. These issues, experts say, all come with the economic consequences of their own.

After 9/11, the United States launched new military including in Iraq. In September 2002, White House economic adviser estimated the cost of invading Iraq is between$100 billion to $200 billion. The head of the White House budget office called the adviser estimates very high and said the war would cost $50 billion to $60 billion; shortly thereafter, the adviser left the White House. In January 2004, a report from the Congressional Budget Office estimated the total costs of Iraq's reconstruction is between $50 billion to $100 billion. …show more content…
The CBO estimates the costs of the Iraq war, projected out through 2017, might top $1 trillion, plus and extra $705 billion in interest payments, and the total cost of Iraq and Afghanistan combined could reach $2.4